Bank of Ireland said today it expected mid-single digit percentage growth in earnings this year as volatile market conditions continue to take their toll.
In a trading statement ahead of results for the year ending March 31st, the bank said volatility in world equity markets in 2002 had had a "significant effect" on income, and this uncertainty had continued into the first quarter of the calendar year, making forecasting difficult.
The trading statement was based on market values at March 21st and included a negative investment variance of around €40 million in the bank's life assurance business, it said.
Weak equity markets had impacted on its life assurance and asset management businesses - which account for a combined total of 16 per cent of group profits - leading to a mid single-digit fall in other income.
Asset quality remained strong, however, the bank said, while core businesses had performed robustly with strong volume growth in key units.
Retail banking in Ireland, which provides 30 per cent of group profits, was expected to show mid-teen percentage growth in pre-tax profit, it said, with wholesale banking - a further 30 per cent of profits - to show high single-digit growth.
The company's alternative EPS will exclude exceptional costs incurred largely from rationalising its British advisory operations. The bank has previously inidcated it will take a €95 million exceptional charge in the year.